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City council voted to restore the race Friday after learning administration and local businesses had stirred up some innovative ways to save it.

"I do think this is a good event," said Mayor Stephen Mandel.

"This is an event we market all over the world."

The race had been temporarily turfed in early November following a $3-million breakdown in contract negotiations between Octane Racing and the city.

To make up the money, the city said Friday it will use $1 million from private partners, while the remaining $2 million will come from new parking revenue.

The parking revenue will be generated by turning Runway 1634 into a parking lot when it's not being used for the Indy.

Parking on that stretch is expected to bring in around $450,000 per year.

"Because there is a pent-up demand for parking in the area, it means 10 months out of the year when we're not running the race we would actually let parking happen," said Lorna Rosen, the city's chief financial officer.

"That would generate the fund to finance the $2 million."

There will be 1,000 stalls, along with another area that will house cars for long-term storage.

Not everyone was in favour of bringing the race back to life.

Coun. Don Iveson didn't support restoring the Indy, saying the city doesn't have the federal support it needs to create a profitable race.

"If we proceed with this, I hope the next three years are better than the last three years," Iveson said in council chambers.

"I hope the event works out well, but I can't support it."

The event has lost money in the past.

Taxpayers were on the hook for $9.2 million in losses for the 2008 and 2009 races. Another $3 million was lost in the 2010 event.

michelle.thompson@sunmedia.ca

- July 24, 2008: The Edmonton Indy arrives for the first time. It posts a $5.8-million deficit.

- July 25, 2009: As part of a three-year contract, the Edmonton Indy returns. It bleeds $3.9 million in red ink.

- July 21, 2010: City reaches a three-year sponsorship deal with the Montreal's Octane Racing Group. The city won't run a deficit with its new partner and commits to spend a limited amount of up-front money.

- July 23, 2010: The Indy returns for the final year of its contract. It loses around $3 million.